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Press Releases, vol. XIV, p. 197

Statement by President Roosevelt, February 29, 1936

By the resolution approved August 31, 1935, a
definite step was taken toward enabling this country to maintain its neutrality
and avoid being drawn into wars involving other nations. It provided that in
the event of the Executive proclaiming the existence of such a war, thereupon
an embargo would attach to the exportation of arms, ammunition, and implements
of war destined to any belligerent country. It also authorized the Executive to
warn citizens of this country against traveling as passengers on the vessels of
any belligerent except at their own risk.

By the resolution I have just signed, the
operation of the August resolution is extended and strengthened until May 1,
1937. A new and definite step is taken by providing in substance that, when an
embargo becomes effective, obligations of any belligerent government issued
after the date of the proclamation shall not be purchased or sold in

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this country, and no loan or credit extended to such government, but with
authority to the Executive, if our interests require, to except from the
prohibition commercial credits and short-time loans in aid of legal
transactions. In addition, it in general exempts the other republics of this
hemisphere from the operation of the law.

Following the August enactment promptly on
October 5, 1935, I issued a proclamation which made effective the embargo with
respect to exportations to Italy and Ethiopia, and I have now issued a new
proclamation in order to meet the requirements of the new enactment.

The policies announced by the Secretary of
State and myself at the time of and subsequent to the issuance of the original
proclamation will be maintained in effect. It is true that the high moral duty
I have urged on our people of restricting their exports of essential war
materials to either belligerent to approximately the normal peacetime basis has
not been the subject of legislation. Nevertheless, it is clear to me that
greatly to exceed that basis, with the result of earning profits not possible
during peace, and especially with the result of giving actual assistance to the
carrying on of war, would serve to magnify the very evil of war which we seek
to prevent. This being my view, I renew the appeal made last October to the
American people that they so conduct their trade with belligerent nations that
it cannot be said that they are seizing new opportunities for profit or that by
changing their peacetime trade they give aid to the continuation of war.